• Korean Journal of Social Welfare
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• v.45
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• pp.7-39
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• 2001

This paper examines the effect of active labor market policy on the unemployment rates in 8 welfare states. This paper focuses on the following questions: what are the major predictors of the changes in unemployment rates?; and what is the effect of active labor market policy in reducing unemployment rates? Using the data from Comparative Welfare States Data Set by Stephens (1997), Key Indicators of the Labour Market by ILO (1999) and Social Expenditure Database by OECD (1999), this paper attempts to answer the above research questions. Fuller-Battese model, a data analysis method in pooled cross-sectional time-series analysis, is adopted to identify variables predicting changes in unemployment rates. This paper analyzes the predictors by using 3 analysis models about 2 types of unemployment (overall unemployment and long term unemployment). Results are as follows: (1) economic variable such as changes in GDP has a positive effect in reducing unemployment rates; (2) active labor market policy has a positive effect in reducing unemployment rates as well; (3) job brokering service among 3 major active labor market programs has a positive effect in reducing unemployment rates; and (4) there is an interaction effect between unemployment benefit level and active labor market policy in reducing unemployment rates. Through the empirical analysis, this paper provides valuable knowledge about effects of active labor market policy on unemployment in 8 welfare states and discusses implications for the active labor market policy in Korea.

• Korean Journal of Social Welfare
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• v.63 no.3
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• pp.187-211
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• 2011

This study examines the effects of active labor market policy on unemployment by pooled cross-section time series analysis utilizing panel data of 18 OECD countries, and seeks implications for improvements of the Korean active labor market policy. The results of the analysis are summarized as follows. First, active labor market policy negatively affects unemployment rates. Second, vacational training program among three major active labor market programs has a negative effect on unemployment rates. Third, employment service program and employment subsidy program have partially negative effects on unemployment rates. The implications for the Korean active labor market policy are as follows. First, it is necessary to expand and systematize active labor market policies. Second, vocational training programs should be systematized and professionalized according to labor demand. Third, employment subsidy programs need to be planned and carried out under the condition of minimizing a substitution effect, a displacement effect and a deadweight loss effect. Fourth, employment service programs need to be developed and carried out under the consideration of not only the reduction of unemployment rates but also the prevention of re-unemployment, mitigation of income inequality and improvement of productivity.

• 한국사회정책
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• v.24 no.4
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• pp.185-222
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• 2017

The purpose of this study is to investigate the effect of labor market policy on fiscal soundness of welfare state. The analysis was carried out using cross-sectional panel data regression analysis, stepwise mediating effect analysis and system GMM designed by Baron and Kenny(1986) based on the data from 1985 to 2015 for 20 OECD countries. In setting up the analysis model, this study considers the interaction effect between active and passive labor market policies as well as the time sequence of the outcomes which have been overlooked in the previous studies. The result shows that labor market policies have significant impacts on the fiscal condition of welfare states, which is measured as the levels of national debt in this study. Especially the expenditure on active labor market programs has a positive effect on improving the fiscal soundness of welfare states by promoting the employment rate. In contrast, passive labor market programs expenditure is negatively associated with employment rate growth and it exacerbates the burden of national debt in the short-term. However, when active labor market programs and passive labor market programs are combined, the negative impacts by passive pabor market policies on the fiscal soundness of welfare states are off-set. Therefore this study addresses that although the expansion of the labor market policies can be inimical to the fiscal soundness of welfare states in the short-term, in the long run, they can have effective roles in securing and promoting the fiscal soundness of the welfare states by promoting the employment rate.

• Korea journal of population studies
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• v.21 no.2
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• pp.83-112
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• 1998

The unemployment rate in Korea increased sharply since the deep economic depression. The rapid increase of unemployment rate is attributed, in part, to economic shock, but more basically to the structural problem of labor market. Moreover over 2-3 years later, the labor market perspective looks dismal. To overcome the labor market crisis, the fundamental reforms aimed at improving the labor market function is required. Thus the focus of policy should shift from reducing unemployment to increasing employment.

• KDI Journal of Economic Policy
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• v.39 no.4
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• pp.69-94
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• 2017

This paper re-examines the impacts an institutional arrangement may have on labour market outcomes such as the employment and unemployment rates. Based on the results from a generalized econometric model, the generosity of unemployment insurance benefits, organized labour and active labour market policy have effects on a labour market in line with previous findings. However, taxes on labour and the degree of employment protection are found to affect neither the employment rate nor the unemployment rate. Thus, some findings in this paper validate earlier findings, whereas others do not.

• Korea journal of population studies
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• v.19 no.1
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• pp.5-44
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• 1996

Wornen's lahor market participation as well as the policy concern for wider utilization of married women, have continuously grown up. However, research efforts on the determinants of women's labor market participation, in the context of the relationship hetween life courses and active entry into lahor market, has been far behind the growing interest in this field. This study has conducted an event histoiry analysis of women's labor market transition utilizing personal occupational history data collected by the Korea Institute for Women's Development in 1991. The analysis is divided into tow parts: First part introduces logit regression to analyze the determinants of women's labor market participation and exit. The second part employs Cox regression to see the variation of transition rate between employment and non-employment. The result shows that there is a wide variation in women's labor market participation according to age, cohort, and family formation. Special note is needed for the significantly negative effect of marriage and child birth on labor market participation. The transition pattern of lower class women with less education fits well to the prediction of neo-classical economics; but the tendency of highly educated women's regression to non-employment reveals the strong influence of the unfavorable labor market structure, which can be better explained by the neo-structuralist perspective. There is a strong trade-off between productive and reproductive labor of women, which can only be corrected by strong policy implementation, such as extended child care facilities, abolition of discriminatory employment practices, and expansion of flexible part-time employment.

• Journal of Labour Economics
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• v.40 no.1
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• pp.99-132
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• 2017

This study examines the employability of participants and employment outcomes in the Korean active labor market policies(ALMPs). The data used in empirical testing is Korea Labor and Income Panel Study 1~15th survey data, participants database in ALMPs and Unemployment Insurance database. The main results are as follows. Level of employability in participants with ALMPs is about 56.3 and that of participants with direct job creation(DJC) programs shows the most low level in sub-type of ALMPs. About 30.8% of all people participating in ALMPs belongs to vulnerable group and 71.5% of participants in DJC programs is in vulnerable group. In DJC programs, the participants with low level of employability are some more likely to be in vulnerable group. As the level of employability in participants with DJC programs increases, their job-search time after moved in labor market reduces and their duration of employment increases. To summarize, one can imply that the DJC programs are effective to transit vulnerable groups in labour market and improve the labor market outcomes by enhancing the employability of participants.

• Economic Analysis
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• v.25 no.2
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• pp.96-131
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• 2019

Initially entering into the job market during hard times with unfavorable market institutions has a persistent, negative effect on young workers' subsequent employment. This paper analyzes hysteresis in youth unemployment by using a composite fixed-effect panel data model. Data sets for the age-cohort unemployment rate and for labor market institutions are constructed from OECD statistics from 21 advanced economies, including Korea, from 1985 to 2017, and are then readjusted to match with the peculiarities of the Korean market. In Korea, with a less-aggressive stance on active labor market policy spending, a male worker who experiences a one percentage point higher youth unemployment rate when he was 20- to 29-years-old has a 0.146 percentage point higher unemployment rate at the ages of 30-to 34-years-old and a 0.035 percentage point higher unemployment rate at the age of 35- to 39-years-old. These figures are larger than those in most countries that have more aggressive spending schemes. These findings point out that hysteresis in the Korean labor market can be mitigated by expanding active labor market policy spending more aggressively and more effectively.

• Journal of Engineering Education Research
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• v.17 no.6
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• pp.30-45
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• 2014

Using the data of Economically Active Population Survey and GOMS, we analyze youth employee's labor mobility. We found the causes of the youth employee's labor mobility as follows: work environment, salary, enterprise's vision, job satisfaction, job mismatching, organizational culture, mismatching of work and housing and so on. On the basis of results, we proposed a step by step solutions. The resulting policy implication is that rather than raising job finding rate of the unemployed youths, we need to focus more on reducing job mismatching.

• KDI Journal of Economic Policy
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• v.27 no.2
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• pp.155-203
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• 2005

This paper intends to provide information about whichgroups should receive particular attention from policies aimed at raising participation and employment. A detailed portrait of the diversity of non-employment is presented with description of the extent the under-represented groups stayed in situations of labor inactivity. Also, once in employment, how these groups move from one sector to another is a main interest in the analysis. Using longitudinal data (1998-2002) constructed from 'the economically active population survey', I followed individuals over a five-year period and analyzed how frequently inactive persons enter the labor market and how they change industries and statuses.